K92 Mining Announces Judd Underground Development Extension Results - Average J1 Vein Grade of 18.70 g/t AuEq at 3.8 m Width - Seite 3

The development drive has been designed as a return airway (“RAD”) and as such has been developed with dimensions of 5.5 m x 5.5 m, significantly larger than an ore drive would be developed. Incorporating the resulting excess planned dilution of over 45%, the 65-metre extension mined an estimated 5,600 tonnes at 13.01 g/t AuEq or 11.92 g/t Au, 0.56% Cu and 27 g/t Ag. When incorporating excess dilution for the higher grade latest 179 metres of development, an estimated 15,600 tonnes at 10.41 g/t AuEq or 9.44 g/t Au, 0.56% Cu and 18 g/t Ag was mined. For the entire 288 metres, including the lower grade northern portion and excess dilution, an estimated 25,700 tonnes at 7.68 g/t AuEq or 6.67 g/t Au, 0.61% Cu and 16 g/t was mined. Vein thickness has averaged 3.7 metres over the entire 288 metres.

John Lewins, K92 Chief Executive Officer and Director, stated, “The latest 65-metre strike extension of the Judd J1 Vein delivered not only a solid average vein thickness of 3.8 metres but an increase in vein grades averaging 18.70 g/t AuEq from channel sampling. Importantly, the frequency of high-grade faces was very high, with 65% of development faces recording J1 Vein grades averaging over 10 g/t AuEq from channel sampling.

The extension continues to build off the high grades reported on November 23, 2020, where the latest 179 metres of development has recorded an average J1 Vein thickness of 3.7 metres at 15.39 g/t AuEq from channel sampling.

While it is still early days, with only a fraction of the +2.5 km of strike explored and at least four known Judd veins recorded, from the results thus far, it is becoming increasingly apparent that Judd has the potential to be very significant for Kainantu. Judd is already emerging as a new mining front, providing a boost to operational flexibility, and Judd is also expected to be a factor for both our resource update and Stage 3 Definitive Feasibility Study in 2H 2021.”

See Figure 1 for Location Map of the Judd Vein System, 1235 Level Bulk Sample, Surrounding Veins and Infrastructure.

See Figure 2 for Judd Vein Long-Section with Current Judd Vein Interpretations.

See Figure 3 for a plan view of the Judd Vein #1 underground channel sampling.

Face Sampling Methodology, QA/QC and Qualified Person

Face channel samples, under geological control, were taken across the full face of both the exposed lode system and any waste rock, with sample intervals ranging from 0.1 to 1m in width depending on the geologist’s interpretation. Two samples were taken per interval at waist and knee height and the corresponding widths recorded. Sample lengths are <1.5m, with samples approximately 3.5 kg in size. Samples were separately assayed for gold, copper and silver, and the results averaged out using length weighting and channel orientation before entry into the database. K92’s procedure includes the insertion standards, blanks and duplicates for the face sampling. Gold assays are by the fire assay method. Copper and silver assays are by three-acid-digestion method (nitric, perchloric & hydrochloric mix).